OFFICIALS from Australia's leading online fodder selling platform believe there will be a strong shift out of hay and into grain this year as farmers attempt to take advantage of soaring international prices.
Feed Central general manager Cieran Maxwell said drought in North America, combined with floods through Europe and China and reduced yield estimates in Russia meant grain prices were expected to stay firm in the medium term.
With fodder stocks relatively plentiful domestically and good seasonal conditions in most areas the expectation is that any farmers with dual purpose crops in this year will take through to grain rather than make hay.
Mr Maxwell warned farmers that buyers would be targeting supplies that had been shedded.
"If producers do not have appropriate shed space for storage or a firm market off the paddock, hay and straw should not be considered an option," Mr Maxwell said.
Quality remains a big concern for buyers, with rain-affected hay, mice plagues and high expectations from end users putting an emphasis on the importance of consistent and readily available quality supply.
Attempts from producers to dump last year's lower quality cereal hay and straw onto the market to free up shed space have not been particularly successful, with buyers still targeting high quality lines.
Feed Central's August Feed Central report says July fodder sales were sporadic and random, with some reasonable tonnage moving in unpredictable patterns, and prices of hay remaining stable.
Mr Maxwell said during July, Feed Central traded 6000 tonnes of fodder as a level of some normality returned to the trade, with cereal hay and straw dominating.
Most vetch hay stayed in Victoria and lucerne hay was used randomly for protein top-ups.
Mr Maxwell said the shift into grain would help run down fodder supplies after the bumper 2020 season and bring supply and demand back into more normal patterns.
While prices have been off in recent times, Mr Maxwell said there was a rosy outlook for fodder, with the heady prices in the beef industry and an improving outlook for dairy both positives for fodder producers.
Lucerne was the highest priced fodder in July, selling for nearly $400 a tonne in Queensland, $250/t in NSW, over $200/t in Victoria and $200/t in South Australia.
Most of the hay traded was shedded and of high quality.
In terms of the upcoming season, Mr Maxwell said some cutting has started early this year with a number of Queensland producers rolling the dice and cutting in August.